US Dollar's 97% Purchasing Power Loss Since 1913 Puts Spotlight on Bitcoin
The US dollar has suffered significantly since its creation in 1913 by the Federal Reserve. According to official statistics from the Bureau of Labor Statistics CPI-U, the dollar has lost about 97% of its purchasing power over this period. In 1913, a single dollar could buy roughly $33-$34 worth of today's goods.
This loss in value is attributed to various factors, including two world wars, the Great Inflation of the 1970s, and the 2021-23 spike. The end of gold convertibility in 1971 also contributed to the dollar's decline. As one user on X stated, 'Check out the biggest, kosher ponzy scam in recent history. The US dollar has lost 97% of its purchasing power since the Federal Reserve was created in 1913. A $3 item in 1913 would cost $100 today.'
Bitcoin, designed as a response to this system, has demonstrated an extreme record since its inception in 2009. Early buyers saw their purchasing power explode, while later buyers endured significant drawdowns. As of early September 2026, Bitcoin trades near $79,852, below its October 2025 peak of $126,080.
The token's price has soared over 59,000% since its inception and has beaten cash and gold in full market cycles. However, it also comes with significant volatility, making it a high-risk investment for those who cannot afford to lose value quickly. Institutional access has reshaped Bitcoin's role, with spot Bitcoin ETFs turning the asset into a ticker that institutional investors can hold without managing private keys.